Gold prices rebounded by ₹1,997 to ₹1.41 lakh per 10 grams in futures trade on Friday, tracking gains in global markets and bargain buying by traders after a sharp decline.
On the Multi Commodity Exchange (MCX), the yellow metal for April delivery increased ₹1,997, or 1.43 per cent, to ₹1,41,490 per 10 grams. It had settled at ₹1,39,493 per 10 grams, down by ₹4,604, or 3.2 per cent on Thursday.
Similarly, the June contract also appreciated by ₹1,811, or 1.27 per cent, to ₹1,44,325 per 10 grams on the MCX. In the previous session, gold futures slumped ₹4,926, or 3.34 per cent, to ₹1,42,514 per 10 grams.
Commodity markets was closed in the morning session on account of Ram Navami and resumed trading in the evening session on Thursday.
In the international market, gold for April delivery on the Comex rose USD 89.1, or 2.04 per cent, to USD 4,465.4 per ounce. The June contract also advanced USD USD 80.55, or 1.83 per cent, to USD 4,489.55 per ounce.
“Gold rose above USD 4,400 per ounce after a sharp decline in the previous session, as US President Donald Trump pushed back his deadline for Iran to secure a deal to end the war,” Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.
He added that Trump had pledged to refrain from targeting Iranian energy facilities until April 6, providing some relief to markets unsettled by nearly a month of hostilities.
Trump also said Iran had allowed 10 oil tankers to pass through the Strait of Hormuz this week as a “present” to the United States.
Meanwhile, Iran had rejected Washington’s 15-point plan and submitted its own conditions, including recognition of Tehran’s authority over Hormuz, to end the war.
Gold dropped nearly 3 per cent in the global markets on Thursday, amid doubts over a potential ceasefire, while rising energy costs fuelled inflation concerns and heightened expectations of interest rate hikes by major central banks, Trivedi said.
He added that gold futures may extend gains in the near term tracking strength in the overseas markets.